Champions School of Real Estate-Law of Contracts Exam
Complete Questions and Guide Answers
100% Verified Graded A+
1. Texas Real Estate Commission
Answer: TREC-created by the Legislature in 1949. 9 member commission whose primary purpose is to carry out the
provision of the License Act
2. Real Estate Recovery Trust Account
Answer: administered by TREC. the purpose of the account is to protect aggrieved individuals who sutter monetary loss due
to illegal acts of license holders
3. unlawful practice of law
Answer: license holder is not qualified to add provisions to contracts that go beyond factual business details.
4. Promulgated Forms
Answer: residential contract forms that are mandatory for license holder
5. Deceptive trade practices Act
Answer: Texas law that applies to trade and commerce that was passed in 1973.
Part of the Texas Business and Commerce code
,6. Land
Answer: surface of the earth extending downward to the center and upward above the surface to infinity
7. Real Estate
Answer: all that encompassed in land with the addition of all man-made additions to the land (improve-
ments)
8. Real Property
Answer: goes beyond physical real estate and includes the rights that a person has in the land.
9. Bundle of Rights
Answer: rights that a person has in the land
10. severable
Answer: ditterent rights can be separate
11. Surface Rights
Answer: the ability to develop the surface and to use resources extracted from or near the surface
12. Subsurface Rights
Answer: rights to oil, gas and minerals, are commonly conveyed through a lease, mineral deed
or reservation
13. Air Rights
Answer: extend above the surface without limitations
, 14. improvements
Answer: man-made additions to the land that is permanent and is considered to become part of the
land
15. personalty/chattel
Answer: personal property
16. bill of sale
Answer: used to accomplish the transfer of personal property, accompanies the deed
17. Fixture
Answer: personal property that has become attached to the land
18. annexation
Answer: personal property that becomes real property
19. severance
Answer: removing fixtures to become personal property
20. Physical Characteristics of Land
Answer: Indestructibility-cannot be destroyed
Immobility-cannot be moved
Non-homogeneity-no two parcels are the same
21. Economic Characteristics of Land
Complete Questions and Guide Answers
100% Verified Graded A+
1. Texas Real Estate Commission
Answer: TREC-created by the Legislature in 1949. 9 member commission whose primary purpose is to carry out the
provision of the License Act
2. Real Estate Recovery Trust Account
Answer: administered by TREC. the purpose of the account is to protect aggrieved individuals who sutter monetary loss due
to illegal acts of license holders
3. unlawful practice of law
Answer: license holder is not qualified to add provisions to contracts that go beyond factual business details.
4. Promulgated Forms
Answer: residential contract forms that are mandatory for license holder
5. Deceptive trade practices Act
Answer: Texas law that applies to trade and commerce that was passed in 1973.
Part of the Texas Business and Commerce code
,6. Land
Answer: surface of the earth extending downward to the center and upward above the surface to infinity
7. Real Estate
Answer: all that encompassed in land with the addition of all man-made additions to the land (improve-
ments)
8. Real Property
Answer: goes beyond physical real estate and includes the rights that a person has in the land.
9. Bundle of Rights
Answer: rights that a person has in the land
10. severable
Answer: ditterent rights can be separate
11. Surface Rights
Answer: the ability to develop the surface and to use resources extracted from or near the surface
12. Subsurface Rights
Answer: rights to oil, gas and minerals, are commonly conveyed through a lease, mineral deed
or reservation
13. Air Rights
Answer: extend above the surface without limitations
, 14. improvements
Answer: man-made additions to the land that is permanent and is considered to become part of the
land
15. personalty/chattel
Answer: personal property
16. bill of sale
Answer: used to accomplish the transfer of personal property, accompanies the deed
17. Fixture
Answer: personal property that has become attached to the land
18. annexation
Answer: personal property that becomes real property
19. severance
Answer: removing fixtures to become personal property
20. Physical Characteristics of Land
Answer: Indestructibility-cannot be destroyed
Immobility-cannot be moved
Non-homogeneity-no two parcels are the same
21. Economic Characteristics of Land
